Hertz Global Holdings Inc. shares plunged 5% in premarket trading Thursday after the car rental company reported a wider fourth quarter loss. The company posted a net loss of $194 million, with adjusted net loss reaching $252 million, or $0.72 per share, missing analyst estimates by $0.20. Revenue rose modestly to $2.03 billion, slightly above the $2 billion consensus.

External disruptions significantly impacted Hertz's bottom line, with the company estimating that government shutdowns, FAA flight cancellations, technology vendor outages, and an unusually high number of vehicle recalls cut fourth quarter EBITDA by more than $100 million. The company also recorded approximately $60 million in non-cash depreciation tied to revised residual value outlooks and softer seasonal wholesale pricing. Excluding these items, core EBITDA aligned with expectations.

CEO Gil West noted that profitability improved by $2 billion during the company's first full year under its turnaround plan. Hertz expects mid-single digit revenue growth in the first quarter of 2026, with January showing meaningful improvement year-over-year and February and March trending higher. The company also reported that residual values are recovering from fourth quarter seasonal lows and sees a more normalized outlook for 2026.